In many schools and districts, teacher evaluation is poorly conducted, or even disparaged or ignored altogether. This handbook advocates a new approach to teacher evaluation--a cooperative effort undertaken by a group of professionals. Evaluation can reassure teachers that they are doing good and valued jobs, give security and status to well-functioning teachers, spread innovative educational ideas, and demonstrate to the public that teachers are contributing successfully to society. Part 1 describes the need for changed teacher evaluation. Part 2 describes how to use multiple data sources, including student and parent reports, peer review of materials, student achievement, teacher tests, documentation of professional activity, systematic observation, and administrator reports. The third part describes tools for improved teacher evaluation--authentic assessment; the use of microcomputers; and new school-district organizations, judging teacher dossiers, and new district payoff structures. The evaluation of other groups--new teachers, administrators, support personnel, and teacher groups--is outlined in part 4. School-district responsibilities and activities are detailed in part 5. Twenty-nine tables, 4 figures, and 12 sample forms are included. A subject and author index and list of legal cases cited are also included. (Contains 271 references.) (LMI)